BHEL Secures INR 2800 Crore Contract from BCGCL for Syngas Plant
Filing Summary
Bharat Heavy Electricals Limited (BHEL) has received a Letter of Acceptance from Bharat Coal Gasification and Chemicals Limited (BCGCL) for a contract valued at approximately INR 2800 Crores. The contract involves the design, engineering, supply, and commissioning of a Syngas Purification Plant for BCGCL’s Coal to Ammonium Nitrate Project in Odisha. The project is expected to achieve preliminary acceptance within 42 months, with operation and maintenance services extending for 60 months thereafter. This transaction is classified as a related party transaction conducted at arm’s length.
Bharat Heavy Electricals Limited (BHEL) has announced the receipt of a Letter of Acceptance from Bharat Coal Gasification and Chemicals Limited (BCGCL) for a significant contract. The contract, valued at approximately INR 2800 Crores, pertains to the Syngas Purification Plant for BCGCL’s Coal to 2000 TPD Ammonium Nitrate Project located in Lakhanpur, Jharsuguda District, Odisha. The acceptance was received on 10th February 2026.
The scope of the contract includes the design, engineering, supply of equipment, civil works, erection, commissioning, and operation and maintenance services for the LSTK 2 Package. The project is scheduled for preliminary acceptance, including commissioning and performance guarantee tests, within 42 months from the date of the Letter of Acceptance. Following this, operation and maintenance services will be provided for an additional 60 months.
This contract is awarded by a domestic entity, BCGCL, which is a joint venture between Coal India Limited (holding 51%) and BHEL (holding 49%). The transaction is classified as a related party transaction and is conducted at arm’s length. The contract was awarded through a domestic tender on a nomination basis.
Bharat Coal Gasification and Chemicals Limited is a joint venture focused on leveraging coal gasification technology for chemical production. The company aims to enhance the utilization of domestic coal resources through advanced technological solutions.
Bharat Heavy Electricals Limited is a leading engineering and manufacturing company in India. It specializes in providing comprehensive solutions for power generation, transmission, and industrial applications. BHEL continues to expand its portfolio in the energy sector, focusing on sustainable and efficient technologies.